Tens of thousands of U.S. residents own land in Baja California. Billions of dollars are being invested and enjoyed across the border. While this article focuses on Baja - these steps should apply to all of Mexico.

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Steps

1

Understand that Mexico is a different country with laws that are similar to that of the USA with many major exceptions. One significant difference is that foreigners may not buy land a certain distance from the borders an coasts - except through a bank trust known as a fideicomiso (fee-day-co-miso). The fideicomiso is a proven solution to the restriction of foreign ownership that is over 30 years old. Simply put, the fideicomiso is a bank trust with a fifty-year term renewable in perpetuity. Through the bank trust foreigners can control a piece of property, sell it, will it, rent it or lease similar to fee-simple title in the USA. In fact, the California Department of Real Estate and other agencies have ruled it to be the equivalent of fee-simple title.

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2

Work only with a proven real estate agent or developer if you are buying new construction.

3

Do not give anyone a deposit unless you are assured that title insurance is available from a U.S. title insurance company like Stewart Title.

4

Call their offices and verify this information as part of your due diligence process.

5

Do not get swept up by the emotion of the moment - ask questions and trust your gut. If a deal sounds too good to be true, it probably is.

6

Write deposit checks to the name of a third-party escrow service based in the USA,

7

Make sure the building has the amenities you want in a Mexican home - and make sure that what is being offered is economically viable. A small project of 50 homes will probably not be able to support services like a restaurant or concierge.

8

Ask questions. Some good questions to ask the seller - and yourself include:

Is the building construction of good quality?

Does the building have adequate fire safety systems?

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